IEA forecasts oil consumption to rise on booming demand from developing countries

The International Energy Agency (IEA) on Thursday projected that the global oil demand will reach a record high next year driven by the increasing demand from emerging markets and developing countries. "Global demand is forecast to grow by 1.2 million barrels per day in 2014, following upwardly-revised growth of 930,000 barrels per day in 2013," said IEA in its monthly Oli Market Report for July. The global economic recovery will push up the demand for oil. However, "emerging market and developing economies are forecast to lead demand growth in 2014," IEA noted. The institute attributed the unseasonably cold weather in the OECD to the raise of the estimates for the second quarter and full-year 2013, which stood at 645,000 barrels per day and 215,000 barrels per day respectively. As to supply, IEA remains optimistic with its forecast as it expects the supply outside the OPEC to grow by 1.3 million barrels per day in 2014, higher than an upwardly revised 1.2 million barrels per day for 2013. The IEA data shows that, month-on-month, global supplies fell by 0.3 million barrels per day to 91.2 million barrels per day in June, as lower OPEC crude output more than offset an 80,000 barrels per day gain in non-OPEC supply. Disruptions in Libya, Nigeria and Iraq cut OPEC crude oil supplies by 370,000 barrels per day in June to 30.61 million barrels per day. "Despite a lacklustre economic outlook, futures markets were buoyed by upheaval in Egypt and supply - side issues," said IEA, adding that futures edged mildly higher in June but posted stronger gains in early July, with Brent crude last trading at 108.3 U.S. dollars a barrel and West Texas Intermediate at 105.2 U.S. dollars a barrel.